Private Sector Development

Today, private sector development plays an important role in the partnerships of the Belgian development cooperation. According to a recent evaluation by the External Evaluation Service there is a lack of strategic direction on key aspects of PSD. Support is often fragmented, because there are few coordination mechanisms that link the different instruments and actors of PSD.

The policy supporting research will describe the current status of the private sector, the inhibitions, bottlenecks and potential in a selected number of partner countries. Special attention should be paid in analyzing the political economy of the current  status quo in PSD issues, the physical and institutional inhibitions, and defining Theories of Change for development. Furthermore, the study will map the current Belgian potential to respond to these needs, and propose a coherent response, leveraging the existing capacity, expertise and instruments to optimal effect. Finally, based on the experience in the pilot areas, a methodology for preparing a Belgian PSD strategy at partner country level will be developed.